"She's an excellent choice, and I believe she'll be confirmed by a wide margin,"
- Charles Schumer of New York, the Senate's No. 3 Democrat
While U.S. political deadlock is delaying tapering of unprecedented monetary stimulus, U.S. President Barack Obama announced what he called probably his most important economic decision, nominating Federal Reserve Vice-Chair Janet Yellen as the next chairman of the nation's central bank on Wednesday. Ms. Yellen not only replace Ben S. Bernanke, who has been leading the Fed for eight years, but also has become the first woman ever to head the 100-year-old U.S. central bank.
Ms. Yellen, having been Bernanke's deputy for the last two years, is seen as a "dove", meaning she prefers boosting employment by keeping rates low rather than worrying about inflation. Her nomination has been widely expected after Larry Summers, former Treasury Secretary, decided to pull his name from consideration to succeed Ben Bernanke as the next Fed chairman amid mounting opposition from Democrats on the Senate Banking Committee.
As a result, the U.S. Dollar got some relief versus the Japanese Yen, though the U.S. budget deadlock kept the greenback close to eight-month low versus a basket of currencies. The Dollar gained 0.4% to 97.22 yen, moving away from the lowest level in two months of 96.55 touched a day earlier.
© Dukascopy Bank SA